A pedestrian walks up Wisconsin Avenue between North 10th and 11th Streets, adjacent to the former Kingsbury brewery property, where a developer was looking to build.

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A proposal that would have brought a new apartment complex to a former brewery property near downtown Sheboygan appears dead after financing to clean up contamination there fell through.

The city reached a purchase-option agreement last year with Mequon-based Office Service Company LLC for the former Kingsbury brewery property at North 10th Street and Wisconsin Avenue, but the sale was dependent on the city securing funding to clean up contamination at the site.

City Planning Director Chad Pelishek said cleanup costs are estimated to be as high as $1 million, but only $400,000 in ...